Gold, silver rise amid Middle East developments

Gold bars

Gold and silver prices rose on Wednesday, supported by hopes for a resolution to the conflict in the Middle East, which pressured oil markets and eased concerns over inflation and sovereign bond yields.

Precious metals also received support from lower dollar and bond yields across the US, Europe, and Japan, after Donald Trump stated that the war with Iran was nearing an end.

However, Trump continued to send mixed signals to markets, saying negotiations with Tehran had entered their final stages while also warning of new strikes if no agreement is reached.

This comes amid market expectations that the Federal Reserve will raise interest rates at its December meeting, as policymakers warn that inflation remains above the 2% target.

Meanwhile, minutes from the Fed’s latest meeting showed that most members are prepared to raise rates if inflation continues to accelerate.